Turkeys financial regulator the Capital Markets Board has sent out a clear message to the public regarding the eagerly awaited regulations for spot FX.
They are expected to finalize rulings on the 25th August 2011 however a presentation by the president ont he 19th August 2011 has extended the date to 31st August 2011.
Some points discussed in the presentation:
CMB has found that the majority of trading is carried out in USD, Gold AND Euro contracts.
Firms operating in the market have been using misleading and aggressive marketing tactics refered to as ‘pink’ marketing techniques.
Current brokers operating in this spectrum do not possess the right competencies to offer protection to clients.
The CMB has categorised market participants who can offer this service:
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Authorised agents – market makers, white label partners and introducing brokers.
Banks and ECN’s aer expected to provide liquidity and pricing.
The CMB has emphasised that brokers operating in this market after the deadline will face criminal proceedings.
All unregulated websites offering ‘FX trading’ will be shutdown after this date.
Forexmagnates’ team will be updating any announcements on this matter and carrying out a detailed analysis on the new regulations and how they will affect the market.
Contribution by Anil Abbak